Jacques Chirac acknowledged last night that France's 18 nights of urban violence had revealed a "profound malaise" in society and launched an appeal to combat the "poison" of racial discrimination.

In his first formal address to the nation since the unrest started on October 27, the French president said the problem had to be tackled firmly but justly. "Those who attack ... must know that in a republic, one cannot break the law without being caught, judged and punished," he said.

Mr Chirac said the rioting reflected a "crisis of ... identity", but added that "we can accomplish nothing if we do not respect the rules". Parental authority was critical, and parents who did not "accept their responsibilities" would be punished. The president confirmed that the government would today put a bill before parliament recommending that the state of emergency be extended for three months until mid-February if necessary.

Everyone should have the chance to share in the benefits of French society, Mr Chirac said, but "discrimination saps the foundations of the republic". The French media and political class must "better reflect the reality of French society today", he insisted. At present, the ethnic minority faces on French television can be counted on the fingers of one hand and mainland France has not a single MP of north African or black African origin.

Companies and trades unions must actively encourage diversity and support employment for immigrant youths from depressed suburbs, he said. He also announced the formation of a national volunteer corps that would offer training for 50,000 youths by 2007 and help them to get jobs. "Everyone must commit themselves, companies too - how many applications end up in the bin because of the applicant's name or address?" he asked. But he ruled out positive discrimination or quotas, saying the country must remain true to its republican values.

Police spoke yesterday of a "confirmed lull" in the violence that has raged through the rundown suburbs of Paris and dozens of other places since October 27. Some 280 cars were set on fire on Sunday, down from 374 on Saturday and more than 1,400 at the height of the rioting.

Upset at the coverage by some US, Russian and Chinese television stations, the government launched a charm offensive yesterday targeting Paris-based foreign correspondents and aimed at restoring the country's image abroad. The foreign affairs minister, Philippe Douste-Blazy, and finance minister, Thierry Breton, met foreign journalists to ask them to "stand back more" from the unrest. A government spokesman, Jean-François Copé, told correspondents: "Reports should tell the truth without taboos, but not exaggerate either. Some have used words and phrases that are manifestly a caricature. To say France was burning, for example, was very far from reality."

Sparked by the deaths of two youths of African origin who were accidentally electrocuted while hiding from police, the nationwide wave of unrest has seen more than 8,500 cars torched and 2,652 people arrested, half of them minors and almost all second- or third-generation immigrants.

The French Federation of Insurance Companies yesterday gave a preliminary estimate of the bill for the damage at €200m (£134m).

With parliamentary backing, the government's "strictly temporary" proposal means the state of emergency, which lets local authorities impose curfews, conduct house searches and take other steps to prevent unrest, could be extended to mid-February. The powers, which would otherwise have ended next week, have been used by some 40 towns or suburbs, mainly to impose curfews on minors.

Other local officials have taken more unorthodox steps: the mayor of the Paris suburb of Draveil, Georges Tron, said yesterday he was halting council aid, for canteens or creches, for the families of youths convicted of rioting or arson.